On the Blog: helpful tips and advice for you and your family

Some stories are just better when they have a happy ending and I guess I’ll spoil it for you. This one does. But then again, is there ever a client story we share that doesn’t? Fair warning, this is almost a story about Jack and Diane, you know, the one about “two American kids doing the best that they can.”

Fred and Charlene Henrick grew up in Kansas City, Missouri following WW2, after Fred returned from the war. Their life following was one that resonates with the times. Fred took a job with Ford Motor Company at the Claycomo Plant when they opened in 1951. Charlene was a math tutor for high schoolers, working out of their house and soon would be raising three children. After 35 years, when the kids were all grown and had moved away, the Henricks decided to move out to the “country”, to Olathe, Kansas.

Well, a lot has changed in Olathe since then and the same would be true for the Henricks. Soon after moving to Olathe, one of their daughters, Aubrey, moved back from Texas, so the grandchildren could be closer to Grandma and Grandpa.

After leaving Ford and moving out to Olathe, Fred continued to work part-time with a local mechanic and Charlene continued to tutor math, although often for younger children like her grandkids. The Henricks' hope was that these finances would be enough to pay for retirement and leave a little legacy for their children, like their home Aubrey was already taking care of all by herself. Having Aubrey down the street wasn’t just good for “free” babysitting and keeping the home safe for her parents, because as time went on, Aubrey was also beginning to spend more time taking care of Fred.

Eventually, Fred’s physical health started to decline faster, while his dementia also seemed to be getting worse. It came time that Charlene and Aubrey could no longer safely care for Fred and they began looking for home health or Skilled Nursing solutions. When discovering the costs of Skilled Nursing, they quickly realized that their finances would not even allow Fred to reside in a community for much over one year and after that they believed they would have to sell their home, which would be all that was left of 65 years of being together. Even though Fred is 93, they were hopeful he would live much longer than a year, so they reached out to a friend who had assisted in moving both of her parents into a local Nursing Home.

Hearing the wonderful family stories of the Henricks is one of the benefits of practicing Estate Planning and Elder Law. However, many families we talk to don’t consider estate planning soon enough to be prepared for long-term care when they need it.And, this often changes good stories into bad. Thankfully, with the proper guidance, waiting until later or when the need arises in life doesn’t mean it’s too late.

After reviewing the Henricks case, they looked to be in good position for applying for Medicaid. This process is fairly straightforward, if you know the hoops to jump through and are prepared to handle continued correspondence with KanCare. Anyone who has filed for Medicaid knows that inevitably, the process is tedious and requires a lot of patience.

Although these rules seem to be a bit fluid at times, one can usually know which part of the application will raise concerns with KanCare, so it is best to be prepared before this happens. To KanCare’s credit, their concerns are almost always valid, given the high level of fraud they must deal with and being stewards of government funds.

When KanCare approved Fred for nursing home benefits, he was assessed a patient obligation to the nursing home. This obligation was basically Fred’s social security and pension income, less a monthly needs allowance. Although we were pleased to see that Fred was approved for Medicaid, we questioned why none of his income had been allocated to Charlene. After further communication with KanCare, it was determined that Charlene would receive a portion of Fred’s income to help her pay her own shelter expenses. The ultimate result is that Fred’s monthly out of pocket cost of care was $650.

More Nursing Homes are beginning to accept Medicaid as payment for care. However, many do not accept residents unless they are already approved or have hired an Elder Law attorney for help.

Berger Estate & Elder Law P.A. have been assisting families and seniors with Medicaid Planning and Long-Term Care Planning in Kansas City for over 30 years providing Trusted Counsel with Proactive Solutions. Give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information.​

Older parents are becoming more common, driven in part by changing cultural mores and surrogate motherhood. Comedian and author Steve Martin had his first child at age 67. Singer Billy Joel just welcomed his third daughter. Janet Jackson had a child at age 50. But later-in-life parents have some special estate planning and retirement considerations.

The first consideration is to make sure you have an estate plan and that the estate plan is up to date. One of the most important functions of an estate plan is to name a guardian for your children in your will, and this goes double for a parent having children late in life. If you don't name someone to act as guardian, the court will choose the guardian. Because the court doesn't know your kids like you do, the person they choose may not be ideal.

In addition to naming a guardian, you may also want to set up a trust for your children so that your assets are set aside for them when they get older. If the child is the product of a second marriage, a trust may be particularly important. A trust can give your spouse rights, but allow someone else -- the trustee -- the power to manage the property and protect it for the next generation. If you have older children, a trust could, for example, provide for a younger child's college education and then divide the remaining amount among all the children.

Another consideration is retirement savings. Financial advisors generally recommend prioritizing saving for your own retirement over saving for college because students have the ability to borrow money for college while it is tougher to borrow for retirement. One advantage of being an older parent is that you may be more financially stable, making it easier to save for both. Also, if you are retired when your children go to college, they may qualify for more financial aid. Older parents should make sure they have a high level of life insurance and extend term policies to last through the college years.​When to take Social Security is another consideration. Children can receive benefits on a parent’s work record if the parent is receiving benefits too. To be eligible, the child must be under age 18, under age 19 but still in elementary school or high school, or over age 18 but have become mentally or physically disabled prior to age 22. Children generally receive an amount equal to one-half of the parent's primary insurance amount (PIA), up to a "family maximum" benefit. You will need to calculate whether the child's benefit makes it worth it to collect benefits early rather than wait to collect at your full retirement age or at age 70.

Berger Estate & Elder Law P.A. has been finding solutions throughout Kansas City for over 30 years providing Trusted Counsel with Proactive Solutions for many. Give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information.

A lot is being said in the press and by national organizations now that President Trump and Congress have passed the tax reform bill. This process has created a lot of consternation and distress for political groups and the media. But what in the world could all this have to do with estate planning…

Like often occurs with controversial political topics, everyone is an expert overnight. As Estate & Elder Law attorneys, we subscribe to and regularly follow some of the biggest names and organizations in the legal field, staying up to date with competitors and industry conversations. This allows us to be an expert in our filed, having practiced estate planning and elder law for over 30 years.

In reading these articles and listening to the conversations, it’s too bad that so many of the opinions and insights have such an obvious political bend, that’s out of alignment and often self-serving. Being able to separate the wheat from the chaff from a legal and financial perspective gives our firm the unique ability to best plan for our client’s futures when politics and laws change. The result of such volatility is that clients often get overwhelmed, worried and forced into decisions that may not benefit them in the long-run. This often looks like jumping out of the stock market after a downturn and sitting on the sidelines when it’s making its next record setting recovery. Sound familiar?

The truth is, at this point and time nobody really knows what will happen to our estate and transfer tax system, which greatly impacts estate and long-term care planning. Furthermore, nobody knows what will happen over the next few years during this administration or the following.

If you have an estate plan or are considering one, the best plan you can have is to ensure that your planning is versatile and leaves room for adjustments in our ever-changing world.Most contemporary trusts and estate plans are broken into two major categories, revocable and irrevocable.

The majority of revocable trusts can be changed by the settlor/trustee, typically the person who makes the trust, as long as they are physically and mentally able. When a settlor is no longer able to perform their duties, by incompetence or death, revocable trusts usually become irrevocable. To retain flexibility with an irrevocable trust, the most important strategy is including Trust Protector provisions. Trust Protector provisions, when properly included in a revocable or irrevocable trust, permit another individual or third-party, like an estate planning attorney to make timely adjustments to your trust to accommodate changes in the law, even if it is or has become irrevocable. ​In today’s changing political and economic environment, including Trust Protector provisions can protect individuals and families from all the uncertainty, especially with future overhauls to our tax code and any other legislation. If you’re considering making changes to an existing trust or interesting in hearing about the benefits of establishing a trust, give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information. Berger Estate & Elder Law P.A. has been delivering solutions throughout Kansas City for over 30 years providing Trusted Counsel with Proactive Solutions for many. ​

Agents or individuals granted authority by Power of Attorney (POA) to act on another’s behalf are often concerned about being held personally liable for their grantee’s finances and health decisions. Well, for those concerned, there is good news coming out of New Jersey, of all places.

Recently a trial court granted a summary judgment to a nursing home resident’s agent under POA in a lawsuit filed by the nursing home for payment of the resident’s unpaid bill. The nursing home lost and ordered the nursing home pay attorney’s fees and costs to the agent.

Charles Douglas was an agent under POA for his aunt, Idella Wright. Ms. Wright entered a nursing home, and Mr. Douglas signed the admission agreement as the responsible party through POA. Mr. Douglas assigned Ms. Wright’s Social Security payments to the nursing home, but Ms. Wright died owing $18,322.

The nursing home sued Mr. Douglas for failing to timely apply for Medicaid benefits and to pay the final bill. Mr. Douglas filed a motion for summary judgment, arguing that he was not personally liable. The court held that the claim Mr. Douglas was forced to defend was unreasonable.

​While the authority to determine who’s responsible to pay Medicaid recovery costs is both responsible to the State and Federal governments, Kansas and Missouri both prohibit nursing homes from requiring third-party representatives from paying unpaid bills. This should reassure anyone considering or who is agent for someone else’s medical and financial decisions, that they won’t be stuck with the bill for being a good steward.

​Berger Estate & Elder Law P.A. has been serving Kansas City for over 30 years providing Trusted Counsel with Proactive Solutions. Give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information.

Many people may be proactive and complete timely estate and elder care planning, but they don’t clearly communicate their intentions with beneficiaries. This creates more work and causes more headaches for others down the line. These issues can be prevented by having honest conversations with family members now, before it gets harder. You most likely know your family better than anybody and know when a good time might be to have “the talk”. However, regardless when the best time may be, it still may not feel like a good time. That’s why it may be easier to start asking yourself and dropping hints to others about some of the most important issues, so you can work your way into taking them on directly soon.

​The death of a friend or an event in the news can often be a natural segue into a discussion about your wishes. To get the gravy flowin', we put together a list of the Ten Most Important Legal Issues to Discuss with Your Family Over the Holidays.

1. Who do you want to talk to your doctors if you are too sick to do it yourself? Do you have a second choice for a backup?

2. Who do you trust to handle your finances if you are not able? Would you like them to be able to act immediately, or only if you are not able?

3. If you are terminally ill, are there any limits to the medical treatment you would find acceptable?

4. Do you really know what is meant by a “DNR” – “Do Not Resuscitate Order”?

5. Are your important papers and financial information kept in one place? Who besides you knows where this is? What about a safe deposit box? Will anyone have access to it if you are disabled or upon death? Do you have a computer? Do you have a list of passwords? Where is it kept?

6. Have you made any plans for long term care? How will you pay for it?

7. Do you want to be buried or cremated? Where?

8. How do you want your estate distributed after your death? Do you have a will or trust? Have you reviewed it lately? Are there any special needs that must be taken care of for your family?

9. How are your accounts titled? Are there any joint accounts that could create unexpected consequences?

10. Do you have an attorney, accountant or financial advisor? Who are they? Does anyone else know them?

Every month we get together and discuss a possible monthly client story to include in our newsletter. These are typically fun discussions that give us time to reflect, laugh about ourselves and of’ course discuss situations that estate and elder law attorneys see on a regular basis. Many of these situations come about because we have such close relationships with our clients. It’s almost like a family reunion, in the fact that everybody likely knows the best and worst of one another. As we all know, most of us aren’t living an Instagram life.

Story Telling is something we all can relate to and is definitely a current buzz phrase in business and marketing circles. As we listen to the stories people tell us overtime, the more we experience with others, their personal life events, even if we weren’t there in real time. Eventually, through these stories, we begin to relate to others and their stories, establishing emotions attached to these relationships through their experiences. This can be both joyful and heartbreaking.

The story that we wanted to share this month is about Gary and Vicki Matters, and it’s a story that we have a close relationship with and have had personal ties to for many years. Gary and Vicki married young and were fortunate enough to be successful both as parents and financially. Having a daughter and a son, they decided about the time their children enrolled in college, that it would be a good strategy to set up an estate plan.

When doing so, the Matters set up multiple charitable trusts for local organizations in and around Kansas City, as well as one for their children. However, as the children grew into young adults, things changed for better and for worse, requiring an adjustment to their estate plans.

After college, the Matters’ son Travis became a missionary. This would impact not only his finances, but also his parents’ estate. Funds that originally would have been distributed to him would now be donated to the nonprofit organization he was volunteering for. Additionally, the makeup of distributions would change, to sustain him during this call.

The sadder side of the Matters revisiting their estate plan had to do with their daughter Kathy. After an annual visit to the doctor following graduation, it was discovered she had pancreatic cancer, and was given a 15% chance to live for 3-5 more years. With her treatments and health deteriorating, she needed assistance managing almost all of her care and assets. She only went on to live 2 more years.

Fast forward 20 years and Greg Matters has somehow found peace with losing his daughter back in 1999. Their son is still a missionary and has seen more of the world than I possibly even knew existed. The Matters, who had their worlds turned upside down more than once, found solid footing, enjoying almost 20 years of traveling and doing some volunteer work themselves, on their own and alongside their son.

After nearly 45 years of marriage, at age 71 Vicki passed away. Afterwards, Greg lived on his own for a few years, but met a friend named Jeannette, whom he later married. These life changes were much different than some earlier ones that brought us so the table sitting down with Greg, but nonetheless brought him back to revisit his estate plan.

Some of the things Jeannette and Greg wanted to discuss were the decisions they needed make before moving into an assisted living community and how to ensure that Greg would be able to pass along part of his estate to his son. These decisions were meaningful to Greg and Jeannette, giving everyone peace of mind with how everything would be handled and taken care of.

Working with retirement planning and caring communities, one is familiar with the acronym CCRC, which stands for Continuing Care Retirement Community. While discussing our client story this week, we came up with a similar one for our firm, CCLF, Continuing Care Law Firm. This gave us a laugh, but a laugh connected to the realization that assisting people in making decisions requires an eagerness to listen to their stories overtime.Learning about what is important to them, their families and how to best align those values with their estate and elder law planning needs. ​Berger Estate & Elder Law P.A. has been serving Kansas City for over 30 years providing Trusted Counsel with Proactive Solutions. Give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information.​

The Importance of Face-to-Face meetings cannot be overstated in the business world, and the same is true for Estate and Elder law planning. Many of us know this, but still many of us (myself included) default to taking the seemingly efficient way out and phone or email to save “time”. This may be necessary when individuals are far apart and for minor decisions when much of the groundwork like relationship building is already well established. However, for many situations, we still believe it's most efficient and reasonable to take the time to meet in person with our clients, for not only efficient planning, but for making decisions that are best for you.

Many of the efficiencies assumed to be a result of phone conferencing or emailing are lost on multiple levels in the communication process required for proper estate and elder law practices, especially when laying the groundwork with which type of planning you need. I would argue that representing a client, family or business without having ever met with an individual in-person, is a poor practice.

Years ago, I found myself in a conversation with a client who was the trustee and beneficiary of an estate. This individual had responsibly been carrying out their duties for about 10 years. However, as time went on, their responsibilities needed to change and therefore, so did their estate plan.

This should have been a relatively straightforward change, but when they insisted on doing all communications by email and phone, the process was quickly bogged down. Without meeting in person with all involved, it is often hard to know which course of action is best. While having to wait for responses to follow-up questions in search for answers, what can get done in an hour meeting, all of a sudden takes multiple hours and more opportunity for miscommunication.

Wanting to make changes to an estate plan is no small decision and shouldn’t be treated as such. Trust me, life would be more relaxed (and I could probably play more golf) if we met with our clients less. Meeting less with our clients means more time on the phone, missing calls and leaving messages and getting half messages. Emails have similar setbacks.

Don’t get me wrong, our office emails and takes calls all throughout the day, but any gains our firm would make by handling more of our responsibilities through these channels and less in-person would be ill-advised and shortsighted. Planning would become subpar and not meet the expectations of our clients or ourselves.

Our procedure to meet with clients, get to know and understand one another and establish a desired solution is valuable. It’s valuable for understanding more about one another and choosing a plan that’s best for you! I’m sorry, but this is not a process that can happen without ever meeting the person you are making such important decisions for. The foundational understanding and trust established when meeting face-to-face enables us to make more efficient decisions in the long run, saving everyone time and money.

During an in-person consultation, it is imperative that we sit down together with our clients to discuss their situations and strategize a path forward to meet mutual goals. Meeting with clients is a critical component of our service. Personal discussions elicit information that is important to a client’s life situation and estate plan that is not possible in an email exchange and definitely not by text.

Our business is about personal relationships and these types of relationships are built upon personal communication. We believe this type of communication is still the most productive and efficient form for building relationships with our clients and for establishing strategy and accountability for our firm and the clients we serve.

Berger Estate & Elder Law P.A. has been serving Kansas City for over 30 years providing Trusted Council with Proactive Solutions. Give us a call today at (913) 491-6332, visit our website berger-lawfirm.com or stop by our conveniently located offices at 11233 Nall, Suite 140 Leawood, KS 66211 for more information.